Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 6, Problem 59P
To determine

Calculate the RIOC rate.

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Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $3 million to build and $100,000 per year to maintain. Design 1B will cost $3.5 million to build and $40,000 per year to maintain. Both designs are assumed to be permanent. Use an AWbased rate of return equation to determine (a) the breakeven ROR, and (b) which design is preferred at a MARR of 10% per year.
A food processing company is considering two types of moisture analyzers. Only one can be selected. The company expects an infrared model to yield a rate of return of 27% per year. A more expensive microwave model will yield a rate of return of 19% per year. If the company’s MARR is 19% per year, can you determine which model should be purchased solely on the basis of the overall rate of return information provided? Why or why not?
Ten noneconomic attributes are identified as A, B, C, ..., J. If they are rank-ordered in terms of decreasing importance with a value of 10 assigned to A, 9 to B, etc., the weighting of attribute B is closest to: (a) 0.24 (b) 0.17 (c) 0.08 (d) 0.04

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Basics Of Engineering Economy

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